(Dulles, VA, 10 January 2006) - Edenspace Systems Corporation announced today the signing of an agreement with the U.S. Department of Energy's National Renewable Energy Laboratory ("NREL"), the nation's premier federal research facility for alternative fuels. Edenspace and NREL will collaborate on development of enhanced plant varieties for use as cellulosic feedstocks in fuel ethanol production. The initial work will address use of engineered corn to boost ethanol yields in existing ethanol production facilities, and will later include work with new, promising energy crops such as switchgrass.

With the recent run-up in gasoline prices, demand for fuel ethanol has grown rapidly. At least four billion gallons of this renewable fuel was produced in 2005, up more than 20% from production in 2004. Nearly all fuel ethanol in the U.S. is made from the starch in corn grain. To increase ethanol production efficiency, it is desirable to use the rest of the plant as well - its leaves, stems and other cellulosic biomass - thereby converting a larger fraction of the sun's energy stored by the plant into fuel. Because today's cost of cellulosic ethanol is higher than the cost of grain-based ethanol, new techniques are needed. The ability to tailor cellulosic feedstocks to reduce required energy inputs and other processing costs, such as by producing enzymes that break down plant cellulose into fermentable sugars, offers tremendous promise and forms the foundation of the agreement between Edenspace and NREL.

Under the terms of the agreement, Edenspace will develop and grow enhanced corn and other crops for ethanol production testing at NREL's facilities in Golden, Colorado. Greenhouse production in 2006 is scheduled to be followed by field trials in 2007 and 2008, with enhanced energy crops available for sale within three years. Work under the agreement is funded in part by the U.S. Department of Energy under a 2005 grant to Edenspace, which is also collaborating on the project with researchers at Michigan State University in East Lansing, Michigan.

In September 2005, Edenspace announced the signing of a cooperative agreement between Edenspace and the U.S. Department of Agriculture to develop switchgrass as an energy crop. While less familiar to farmers and consumers than corn, with its perennial growth and low fertilizer requirements switchgrass also offers excellent potential for low-cost ethanol production.

In making the announcement, Mr. Bruce W. Ferguson, co-founder and President of Edenspace, said "Energy crops provide an unparalleled opportunity to produce renewable, environmentally-friendly fuels that can benefit household budgets as well as the balance of trade. We are delighted to have NREL join us in a dynamic collaboration of industry, universities and government seeking to develop a low-cost fuel for motorists and a new income opportunity for farmers."

Headquartered in Dulles, Virginia, Edenspace Systems Corporation is a commercial leader in the use of plants for renewable fuels and environmental applications. The company received the Environmental Business Journal's Technology Award in 2004 and the DaimlerChrysler Environmental Excellence award in 1999. With expertise in plant science, environmental and soil science, genetics and agronomy, Edenspace is developing innovative, sustainable technologies to fulfill energy needs, improve human health, protect property values and restore the environment.